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1. Choose Cards > Service Management > Service Manager.
2. Select a customer and choose the Contract indicator.
3. Select a contract and choose Revenue/Cost. The Revenue/Costs window opens.
   • Contract RevenueThis : This column shows the contract amount and percent distribution among cost categories based on the values in the Contract Amount Breakdown window.
   • Contract Costs Actual to DateShows : Shows all costs for the life of the contract.
   • Contract Costs Current YearShows : Shows the current year's costs.
   • Estimate, HoursThese : These columns contain your cost estimates for each cost category and your cost and hour estimates for each labor subcategory.
   • Forecast, HoursWhen : When the contract is created, forecast costs equal estimate costs. Actual costs are later accumulated in this column, thereby measuring the accuracy of your estimates. You need values in the forecast column to calculate the contract earned amount and to close a contract.
   • TotalThe : The first Total field has an expansion button that opens the Contract Amount Breakdown window where you can divide the total contract amount among the cost categories.
   • HoursContains : Contains the contract's hours to date and for the current year.unmigrated-wiki-markup
   • *

     Calculated

     Contract

     Earned

     {*}

     : Based

     on

     the

     following

     equation:

     \

       [Total

     contract

     recognized

     costs

     /

     total

     forecast

     costs

     \

     ]

     x

     contract

     amount

     = contract earned If you haven't entered forecast costs, this field equals the Contract Amount field

     = revenue recognized When using revenue schedule, this field is updated based on the contract's billing schedule as the revenue recognition process is completed.

   • Calculated Gross Profit

     The

     : The Calculated Contract Earned minus the Total Cost.

     unmigrated-wiki-markup

   • *

     Revenue

     Recognized

     {*}

     : Calculated

     based

     on

     the

     following

     equation

     when

     using

     percentage-of-completion:

     \

      [Total

     contract

     recognized

     costs

     /

     total

     forecast

     costs

     \

     ]

     x

     contract

     amount

     =

     revenue

     recognized

     When

     using

     revenue

     schedule,

     this

     field

     is

     updated

     based

     on

     the

     contract's

     billing

     schedule

     as

     the

     revenue

     recognition

     process

     is

     completed.

   • BilledTotal : Total amount of invoices created for the contract.
4. Choose the Costs Life to Date button to open Contract Costs Life to Date window, which displays total costs for each cost category for the life of the contract.

5. If you are using the percentage-of-completion revenue recognition method, choose the Period Summary button to view the posted transactions to date. Double-click a row to view transaction detail. 

   Note

...

1. If you are using the manual method of revenue recognition,

...

1. the Period Summary

...

1. button is not available.

   
   

2. If you are using the revenue schedule method of revenue recognition, choose the Revenue Entered button to open the Revenue Schedule window. Revenue amounts are listed along with the Date, Year, and Period in which they were posted. If the revenue amount has not yet been recognized, 0/0/00 appears in the Posted Date column. 

   Note

...

1. If you are using the manual method of revenue recognition,

...

1. the Revenue Entered

...

1. button is not available.

   
   

Anchor
servicemanagement_reviewing_the__8198 servicemanagement_reviewing_the__8198

Reviewing the contract spending plan

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If you created a contract spending plan with estimate costs distributed based on how you expect actual costs to be incurred throughout the life of the contract, you can use the Maintenance Contract Spending Plan report to review estimate costs, actual costs, billed amounts, and recognized revenue by month. This allows you to compare estimates to actuals and determine contract profitability at any point in time.

The Contract Spending Plan report can be printed for any open contract.

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